LyondellBasell, Bora sign agreements to form Chinese joint venture
06 March 2020
Petrochemicals and refining giant LyondellBasell on Thursday announced the signing of definitive agreements with the Liaoning Bora Enterprise Group (Bora) to set up a 50:50 joint venture to manufacture petrochemicals, as part of its plans to expand in China.
LyondellBasell and Bora first signed a memorandum of understanding on 5 September 2019 and announced their intention to form this joint venture during a ceremony in Panjin, China.
"China is a large market with growing demand for high quality polyolefin products," said Bob Patel, CEO of LyondellBasell. "The combination of LyondellBasell's leading technology and Bora's operational excellence will allow us to reliably produce and provide these needed products to local customers."
Under the agreements, the partners will form a Sino-foreign joint venture, the Bora LyondellBasell Petrochemical Co Ltd, that will operate a 1.1 million metric tonnes per annum ethylene cracker and associated polyolefin derivatives complex in Panjin, China, with a total expected cost of approximately $2.6 billion.
The complex will produce products that serve the growing demands of various industries in China, including packaging, transportation, building and construction, and healthcare and hygiene.
LyondellBasell will market the polypropylene and high-density polyethylene which will be produced utilising LyondellBasell licensed Spheripol, Spherizone polypropylene technologies and Hostalen ACP polyethylene technology. Start-up is expected in the second half of 2020.
According to IHS Markit, Asia is the largest and fastest growing polyolefin market in the world. China accounts for more than 60 per cent of the Asian polyolefins market and represents 40 per cent of global growth. Olefins and polyolefins are core products of LyondellBasell.
LyondellBasell expects to make its equity contribution in the coming months. The formation of the JV is subject to approvals by relevant government authorities, including antitrust review by the State Administration for Market Regulation.
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Its products include lightweight and flexible packaging, stronger and more versatile pipes for improving the safety, comfort and fuel efficiency of cars and trucks, and ensuring the safe and effective functionality in electronics and appliances.
The company sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies.?